Sukanya Samriddhi Yojana (SSY)/सुकन्या समृद्धि योजना Benefits & Interest Rates

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What is Sukanya Samriddhi Yojana (SSY) – A Detailed Guide

Sukanya Samriddhi Yojana, commonly known as SSY is a saving scheme especially crafted for the girl child in India. This scheme targets the parents of girl children to encourage them to financially secure their future. The savings done through this plan can be used for various expenses related to the child, including her higher education or marriage etc.

This scheme was initiated by the Indian Government under the campaign named; ‘Beti Bachao Beti Padhao‘. It is presently available at 7.6% interest rate and facilitates parents to deposit small amounts as savings for their daughters.

SSY is available with numerous tax benefits. The scheme guarantees income-tax assistance under the Income Tax Act,1961 under section 80C. In addition, the scheme allows parents to earn tax-exemption from returns and from sukanya samriddhi yojana maturity.

Sukanya Samriddhi Yojana / सुकन्या समृद्धि योजना Information

Interest rate 7.60% p.a.
Investment Amount Minimum – Rs.250, Maximum Rs.1.5 lakh p.a.
Maturity Amount Depends on the invested amount
Maturity Period 21 years

Parents of girl child can open a SSY account any time between the birth of the child till the time she is 10 years old. An account of SSY can be opened in any of the  authorized branches of a commercial bank or in a post office in any city in India.

Also Read: Best Child Insurance Plans in India in 2022

Let us learn more about this scheme in detail including how to calculate its investment rate by using Sukanya Samriddhi Yojana calculator and the rate of interest that has been offered by the scheme:

Duration Rate of interest (%)
April 2020 onwards 7.6
1 January 2019 – 31 March 2019 8.5
1 October 2018 – 31 December 2018 8.5
1 July 2018 – 30 September 2018 8.1
1 April 2018 – 30 June 2018 8.1
1 January 2018 – 31 March 2018 8.1
1 July 2017 – 31 December 2017 8.3
1 October 2016 – 31 December 2016 8.5
1 July 2016 – 30 September 2016 8.6
1 April 2016 – 30 June 2016 8.6
From 1 April 2015 9.2
From 1 April 2014 9.1

Rules for Sukanya Samriddhi Yojana (SSY) account opening

The government of India notified the rules pertaining to SSY plan. The notification was introduced in December 12, 2019. 

  • As per the rules, you can open an SSY account only if you are the girl child’s guardian by birth or by legal means.
  • The account needs to be opened in the gild child’s name between the period when she is born till she turns 10 years old.
  • The scheme allows the parents to open a single account for one girl child and for maximum two girls in a single family. So, if there are more than 2 girl children in a family, they cannot have the account opened for all of them.
  • The scheme requires the parents to submit the certificate of birth of the child who is legal heir to the account at the time when the account is opened in a bank or a post office.
  • Moreover, there are other documents required to be submitted such as ID proof, Address proof etc. of the guardian of the account holder.

How much can be deposited in the Sukanya Samriddhi Yojana (SSY) account?

The SSY account allow parents/guardians to open the account with an initial investment of just Rs 250. Once you open the account, you can deposit savings in the form of multiples of Rs 50. However, it is obligatory to maintain a minimum deposit of Rs. 250 per annum in the account, though this deposited amount cannot exceed 1,50,000 per financial year.

Another rule regarding cash deposit in the SSY is that once the account is opened, deposits can be done for the next 15 years. The SSY account matures on the 21st year of the account but deposits are allowed till the 15th year of the account. But the account continues to earn interest on the deposited amount till it matures.

If an account is defaulted due to non-payment of minimum 250 rupees per annum, in that situation, the account can be renewed by depositing a fine of 50 rupees along with the minimum amount of 250  rupees before the closure of the account.

If you want to check the Sukanya Samriddhi Yojana amount that you can invest and the return that you can receive on that amount, you can do so by using the SSY calculator, which we have discussed below.

But before that lets check all required documents needed to open a SSY account.

How to Open a Sukanya Samriddhi Yojana Account: Documents Required for SSY

  • Photo of applicant
  • Aadhaar number of parents/guardian
  • PAN of parents/guardian
  • Account holder’s (girl child) birth certificate
  • KYC documents (ID proof/ Address proof)

Operation of the SSY/सुकन्या समृद्धि योजना scheme

As already mentioned above, the SSY plan is managed by the parents/guardian of a girl child till she turns 18 years old after which she herself can operate it by submitting the required KYC details.

However, if due to any sudden event the nominee of the account (the girl child in this case) dies prematurely, the account can be closed by showing the death certificate of the child. In this case, the parents can claim the balance available in the account.

The SSY account also allows withdrawal of partial amount from the account if there is any immediate financial requirement of the account holder, such as higher education etc. However, for this the girl child should turn 18 or completes 10th exam to avail such benefit.

The Sukanya Samriddhi Account Maturity 

Though money in the SSY account can be deposited till the account turns 15 years from the date of opening the account, but the account maturity reaches when it completes 21 years.

However, the account holder can make a request for permitting maturity of the account before it completes 21 years in case of any financial requirement of the account holder, such as higher education or her marriage.

Tax benefits available in SSY/सुकन्या समृद्धि योजना scheme

This scheme allows highest return on tax deduction, and the scheme comes with the EEE status. The contributions per year in this account is also qualified for benefits under Section 80C as well as offering non-taxable maturity benefits. Hence, there are many benefits of the SSY account.

Sukanya Samriddhi Yojana calculator

If you want to calculate the interest rate that you can earn from SSY and also to help you have a better understanding of the plan, you can do so by using the below formula in sukanya samriddhi scheme calculator.

A = P(r/n+1) ^ nt

Here, ‘A‘ is the compound interest, ‘P‘ is the principal sum, ‘r‘ is interest rate, ‘n‘ is annual compounding interests number, and ‘t‘ is number of years.

Overall, if you see the above information you will realize that the Sukanya Samriddhi Yojana is a wonderful investment scheme for a girl child. The plan offers good opportunity for the parents and guardian to secure money for their daughter’s education and to give wings to her dreams. Also, they can even use the amount to incur the wedding expenses of the child. And to calculate the maximum benefit that can be received by SSY account, you can use the sukanya samriddhi yojana calculator.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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